FTSE 250 fund administrator Sanne Group PLC (LON:SNN) has agreed to acquire Irish group Inbhear for €6.6mln in a bid to enhance its Dublin operation and establish a presence in the Cayman Islands.
The company said the acquisition, scheduled to complete on 1 March, will be “earnings neutral” in 2020 due to increased investments in the Cayman, however, it is expected to become earnings enhancing from 2021 onwards.
Meanwhile, in a trading update for the year ending 31 December, the firm said its revenues are due to increase by around 16%, with “strong double digit growth rates” reported for its Europe, Middle East and Africa (EMEA), Asia Pacific and North America segments.
The Channel Islands book delivered a “broadly flat” result in the year following headwinds in the private client and corporate businesses, although Sanne said it had continued to see “good new business win activity”, with full year annualised new business wins forecast to be at the same level as 2018 at £24.5mln, adding that the momentum had continued into 2020 with some significant wins falling in the new year.
The company is also expecting to report underlying earnings per share in line with its expectations, adding that it “remains confident” of its future prospects.
The shares were flat at 600p in early deals on Wednesday.